AB1-SA1,16,87 (b) The total amount of assessments collected from each hospital under this
8section.
AB1-SA1,16,109 (c) The total amounts that the department determines were paid to health
10maintenance organizations for increased Medical Assistance payments to hospitals.
AB1-SA1,16,1211 (d) The total amount of payments made to each hospital by health maintenance
12organizations under s. 49.45 (58) (b) 1.
AB1-SA1,16,1613 (e) The total amount of Medical Assistance payments made to each hospital and
14the portion of the Medical Assistance capitated payments made to health
15maintenance organizations for inpatient and outpatient hospital services from
16appropriation accounts of general purpose revenues.
AB1-SA1,16,1917 (f) The total amounts, including the amounts specified under par. (c), that the
18department determines were paid to health maintenance organizations for Medical
19Assistance payments to hospitals.
AB1-SA1,16,2220 (g) The results of any audits conducted by the department under s. 49.45 (58)
21concerning Medical Assistance payments and any actions taken by the department
22as a result of such an audit.
AB1-SA1, s. 9cf 23Section 9cf. 59.58 (6) (cb) of the statutes is created to read:
AB1-SA1,17,3
159.58 (6) (cb) The authority shall be responsible for sponsoring, developing,
2constructing, and operating a commuter rail transit system connecting the cities of
3Kenosha, Racine, and Milwaukee, to be known as the KRM commuter rail link.
AB1-SA1, s. 9cg 4Section 9cg. 59.58 (6) (cr) of the statutes is amended to read:
AB1-SA1,17,85 59.58 (6) (cr) The authority may hire staff, conduct studies, and expend funds
6essential to the preparation of the report specified in par. (e) and in furtherance of
7its responsibility under par. (cb) to develop and construct the KRM commuter rail
8link
.
AB1-SA1, s. 9ch 9Section 9ch. 59.58 (6) (e) 3g. of the statutes is created to read:
AB1-SA1,17,1310 59.58 (6) (e) 3g. A study on the feasibility of adding a commuter rail stop and
11station at points where any proposed commuter rail route would intersect National
12Avenue in the city of Milwaukee or Greenfield Avenue in the city of Milwaukee or
13both.
AB1-SA1, s. 9ci 14Section 9ci. 59.58 (6) (e) 3m. of the statutes is created to read:
AB1-SA1,17,1715 59.58 (6) (e) 3m. A study on the feasibility of extending any proposed commuter
16rail project through the 30th Street corridor in the city of Milwaukee to the northern
17county line of Milwaukee County.
AB1-SA1, s. 9cj 18Section 9cj. 59.58 (6) (e) 4r. and 6. of the statutes are repealed.
AB1-SA1, s. 9ck 19Section 9ck. 59.58 (6) (f) of the statutes is created to read:
AB1-SA1,17,2420 59.58 (6) (f) 1. The authority may issue bonds, the principal and interest on
21which are payable exclusively from all or a portion of any revenues received by the
22authority. The authority may secure its bonds by a pledge of any income or revenues
23from any operations, rent, aids, grants, subsidies, contributions, or other source of
24moneys whatsoever.
AB1-SA1,18,4
12. The authority may issue bonds in an aggregate principal amount not to
2exceed $50,000,000, excluding bonds issued to refund outstanding bonds issued
3under this subdivision, for the purpose of providing funds for the anticipated local
4funding share required for initiating KRM commuter rail link service.
AB1-SA1,18,65 3. Neither the governing body of the authority nor any person executing the
6bonds is personally liable on the bonds by reason of the issuance of the bonds.
AB1-SA1,18,117 4. The bonds of the authority are not a debt of the counties that created the
8authority. Neither these counties nor the state are liable for the payment of the
9bonds. The bonds of the authority shall be payable only out of funds or properties
10of the authority. The bonds of the authority shall state the restrictions contained in
11this subdivision on the face of the bonds.
AB1-SA1,18,2512 5. Bonds of the authority shall be authorized by resolution of the authority's
13governing body. The bonds may be issued under such a resolution or under a trust
14indenture or other security instrument. The bonds may be issued in one or more
15series and may be in the form of coupon bonds or registered bonds under s. 67.09.
16The bonds shall bear the dates, mature at the times, bear interest at the rates, be in
17the denominations, have the rank or priority, be executed in the manner, be payable
18in the medium of payment and at the places, and be subject to the terms of
19redemption, with or without premium, as the resolution, trust indenture, or other
20security instrument provides. The authority may sell the bonds at public or private
21sales at the price or prices determined by the authority. If a member of the governing
22body of the authority whose signature appears on any bonds or coupons ceases to be
23a member of the governing body of the authority before the delivery of such
24obligations, the member's signature shall, nevertheless, be valid for all purposes as
25if the member had remained a member until delivery of the bonds.
AB1-SA1,19,12
16. The authority may issue refunding bonds for the purpose of paying any of
2its bonds at or prior to maturity or upon acceleration or redemption. The authority
3may issue refunding bonds at such time prior to the maturity or redemption of the
4refunded bonds as the authority deems to be in the public interest. The refunding
5bonds may be issued in sufficient amounts to pay or provide the principal of the bonds
6being refunded, together with any redemption premium on the bonds, any interest
7accrued or to accrue to the date of payment of the bonds, the expenses of issue of the
8refunding bonds, the expenses of redeeming the bonds being refunded, and such
9reserves for debt service or other capital or current expenses from the proceeds of
10such refunding bonds as may be required by the resolution, trust indenture, or other
11security instruments. To the extent applicable, refunding bonds are subject to subd.
125.
AB1-SA1, s. 9cL 13Section 9cL. 66.0615 (1m) (f) 2. of the statutes is amended to read:
AB1-SA1,19,1814 66.0615 (1m) (f) 2. Sections 77.51 (12m), (14) (c), (f) and (j) and, (14g), (15a),
15and (15b),
77.52 (3), (4), (6) and (13), (14), (18), and (19), 77.522, 77.58 (1) to (5) , (6m),
16and (7), 77.585, 77.59, 77.60, 77.61 (2), (3m), (5), (8), (9), and (12) to (14) (15), and
1777.62, as they apply to the taxes under subch. III of ch. 77, apply to the tax described
18under subd. 1.
AB1-SA1, s. 9cm 19Section 9cm. 70.111 (23) of the statutes is amended to read:
AB1-SA1,19,2520 70.111 (23) Vending machines. All machines that automatically dispense soda
21water beverages, as defined in s. 97.29 (1) (i), and items included as a food or beverage
22under s. 77.54 (20) (a) and (b)
food and food ingredient, as defined in s. 77.51 (3t),
23upon the deposit in the machines of specified coins or currency, or insertion of a credit
24card, in payment for the soda water beverages, food or beverages food and food
25ingredient, as defined in s. 77.51 (3t)
.
AB1-SA1, s. 9cn
1Section 9cn. 71.05 (1) (c) 9. of the statutes is created to read:
AB1-SA1,20,22 71.05 (1) (c) 9. The regional transit authority under s. 59.58 (6) (f).
AB1-SA1, s. 9co 3Section 9co. 71.07 (5e) (b) of the statutes is amended to read:
AB1-SA1,20,114 71.07 (5e) (b) Filing claims. Subject to the limitations provided in this
5subsection and subject to 2005 Wisconsin Act 479, section 17, beginning in the first
6taxable year following the taxable year in which the claimant claims an exemption
7a deduction under s. 77.54 (48) 77.585 (9), a claimant may claim as a credit against
8the taxes imposed under ss. 71.02 and 71.08, up to the amount of those taxes, in each
9taxable year for 2 years, the amount certified by the department of commerce that
10resulted from the claimant claimed as an exemption claiming a deduction under s.
1177.54 (48) 77.585 (9).
AB1-SA1, s. 9cp 12Section 9cp. 71.07 (5e) (c) 1. of the statutes is amended to read:
AB1-SA1,20,1413 71.07 (5e) (c) 1. No credit may be allowed under this subsection unless the
14claimant satisfies the requirements under s. 77.54 (48) 77.585 (9).
AB1-SA1, s. 9cr 15Section 9cr. 71.07 (5e) (c) 3. of the statutes is amended to read:
AB1-SA1,20,1916 71.07 (5e) (c) 3. The total amount of the credits and exemptions the sales and
17use tax resulting from the deductions claimed under s. 77.585 (9)
that may be claimed
18by all claimants under this subsection and ss. 71.28 (5e), 71.47 (5e), and 77.54 (48)
1977.585 (9) is $7,500,000, as determined by the department of commerce.
AB1-SA1, s. 9dc 20Section 9dc. 71.22 (9) of the statutes is amended to read:
AB1-SA1,21,221 71.22 (9) "Person" includes corporations, unless the context requires
22otherwise. "Person" may include, as determined by the department, any individual,
23partnership, general partner of a partnership, limited liability company, registered
24limited liability partnership, foreign limited liability partnership, syndicate, estate,

1trust, trustee in bankruptcy, receiver, executor, administrator, assignee, or
2organization.
AB1-SA1, s. 9dd 3Section 9dd. 71.255 of the statutes is created to read:
AB1-SA1,21,4 471.255 Combined reporting. (1) Definitions. In this section:
AB1-SA1,21,75 (a) "Combined group" means the group of all persons whose income and
6apportionment factors are considered under sub. (2) to determine the taxpayer's
7share of the net business income or loss that is apportionable to this state.
AB1-SA1,21,108 (b) "Combined report" means a return under s. 71.24 that is filed on a form
9prescribed by the department that specifies the income, credits, and tax of each
10taxpayer member of a commonly controlled group operating as a unitary business.
AB1-SA1,21,1211 (c) "Commonly controlled group" means any of the following, but does not
12include an insurer that is exempt from taxation under s. 71.45 (1):
AB1-SA1,21,1913 1. A parent corporation and any corporation or chain of corporations that are
14connected to the parent corporation by direct or indirect ownership by the parent
15corporation if the parent corporation owns stock representing more than 50 percent
16of the voting power of at least one of the connected corporations or if the parent
17corporation or any of the connected corporations owns stock that cumulatively
18represents more than 50 percent of the voting power of each of the connected
19corporations.
AB1-SA1,21,2220 2. Any 2 or more corporations if a common owner, regardless of whether or not
21the owner is a corporation, directly or indirectly owns stock representing more than
2250 percent of the voting power of the corporations or the connected corporations.
AB1-SA1,21,2423 3. Any 2 or more corporations if stock representing more than 50 percent of the
24voting power in each corporation are interests that cannot be separately transferred.
AB1-SA1,22,5
14. Any 2 or more corporations if stock representing more than 50 percent of the
2voting power in each corporation is directly owned by, or for the benefit of, family
3members. In this subdivision, "family member" means an individual related by
4blood, marriage, or adoption within the 2nd degree of kinship as computed under s.
5852.03 (2), 1995 stats., or the spouse of such an individual.
AB1-SA1,22,126 (d) "Corporation" means a corporation, as defined in s. 71.22 (1k), that,
7regardless of where the corporation is located, would be subject to the taxes imposed
8under this chapter, if the corporation were doing business in this state. For purposes
9of this section, the business conducted by a pass-through entity that is directly or
10indirectly held by a corporation is considered the corporation's business
11proportionate to the corporation's distributive share of the pass-through entity's
12income. "Corporation" does not include a tax-option corporation.
AB1-SA1,22,1313 (e) "Department" means the department of revenue.
AB1-SA1,22,1714 (f) "Internal Revenue Code" means the Internal Revenue Code as defined in s.
1571.22 (4) and (4m), including any provision of a federal tax treaty that expressly
16applies to the states of the United States, but not including any other application of
17a federal tax treaty.
AB1-SA1,22,2218 (g) "Pass-through entity" means a general or limited partnership, any
19organization that is treated as a partnership for purposes of this chapter, a real
20estate investment trust, a regulated investment company, a real estate mortgage
21investment conduit, a financial asset securitization investment trust, a trust, or an
22estate.
AB1-SA1,23,223 (h) "Tax haven" means a jurisdiction that, for any taxable year, is identified by
24the organization for economic cooperation and development as a tax haven or as

1having a harmful, preferential tax regime or has no, or a nominal, effective tax on
2income and all of the following apply:
AB1-SA1,23,53 1. The jurisdiction has laws or practices that prevent the effective exchange of
4information, for tax purposes, with other governments on taxpayers benefiting from
5the tax regime.
AB1-SA1,23,106 2. The details of the legislative, legal, or administrative provisions of the
7jurisdiction's tax regime are not publicly available and apparent or are not
8consistently applied to similarly situated taxpayers or the information needed by tax
9authorities to determine a taxpayer's correct tax liability, including accounting
10records and underlying documentation, is not adequately available.
AB1-SA1,23,1311 3. The jurisdiction facilitates the establishment of foreign-owned entities
12without requiring a local substantive presence or prohibits such entities from having
13any commercial impact on the local economy.
AB1-SA1,23,1614 4. The tax regime explicitly or implicitly excludes the jurisdiction's resident
15taxpayers from taking advantage of the tax regime's benefits or prohibits enterprises
16that benefit from the regime from operating in the jurisdiction's domestic market.
AB1-SA1,23,2017 5. The jurisdiction has created a tax regime that is favorable for tax avoidance,
18based upon an overall assessment of relevant factors, including whether the
19jurisdiction has a significant untaxed offshore financial or other services sector
20relative to its overall economy.
AB1-SA1,23,2221 (i) "Taxpayer member" means a corporation that is subject to tax under s. 71.23
22(1) or (2) and that is a member of a combined group.
AB1-SA1,24,1923 (j) "Unitary business" means a single economic enterprise that consists of
24separate parts of a single business entity or of a commonly controlled group of
25business entities that are sufficiently interdependent, integrated, and interrelated

1by their activities so as to provide a synergy and a mutual benefit that produces a
2sharing or exchange of value among them and a significant flow of value to the
3separate parts. For purposes of this section, 2 or more business entities are
4considered a unitary business if the entities have unity of ownership, operation, and
5use, as indicated by centralized management or a centralized executive force;
6centralized purchasing, advertising, or accounting; intercorporate sales or leases;
7intercorporate services; intercorporate debts; intercorporate use of proprietary
8materials; interlocking directorates; or interlocking corporate officers. Any business
9conducted by a pass-through entity that is owned directly or indirectly by a
10corporation is considered conducted by the corporation, to the extent of the
11corporation's distributive share of the pass-through entity's income, regardless of
12the percentage of the corporation's ownership interest. A business conducted
13directly or indirectly by one corporation is unitary with that portion of a business
14conducted by another corporation through its direct or indirect interest in a
15pass-through entity, if the corporations are sufficiently interdependent, integrated,
16and interrelated by their activities so as to provide a synergy and a mutual benefit
17that produces a sharing or exchange of value among them and a significant flow of
18value to the separate parts and the two corporations are members of the same
19commonly controlled group.
AB1-SA1,24,24 20(2) Corporations required to use combined reporting. (a) A corporation
21engaged in a unitary business with any other corporation shall file a combined report
22that includes the income, determined under sub. (3), and apportionment factor,
23determined under sub. (5) and s. 71.25, of the following members of the unitary
24business:
AB1-SA1,25,4
11. Any member incorporated in the United States, including the District of
2Columbia and any territory or possession of the United States, or formed under the
3laws of any state, the District of Columbia, or any territory or possession of the
4United States.
AB1-SA1,25,65 2. Any member, regardless of where the entity is incorporated or formed, if the
6average of the following ratios is 20 percent or more:
AB1-SA1,25,137 a. The value of the member's real property and tangible personal property
8located in the United States, including the District of Columbia and any territory or
9possession of the United States, not including property that is used to produce
10nonapportionable income, divided by the value of all of the member's real property
11and tangible personal property, not including property that is used to produce
12nonapportionable income. For purposes of this subd. 2. a., the value of property that
13the member rents is the net annual rental amount for the property, multiplied by 8.
AB1-SA1,25,2114 b. The amount of the member's payroll that is paid in the United States,
15including the District of Columbia and any territory or possession of the United
16States, divided by the amount of the member's total payroll. For purposes of this
17subd. 2. b., payroll includes compensation paid to employees, but does not include
18payroll used to produce nonapportionable income. The payroll paid in the United
19States, including the District of Columbia and any territory or possession of the
20United States, shall be determined in the same manner as payroll is determined for
21this state under s. 71.25 (8) (b) 1. to 5.
AB1-SA1,26,222 c. The member's sales in the United States, including the District of Columbia
23and any territory or possession of the United States, divided by the member's total
24sales. For purposes of this subd. 2. c., sales include items identified in s. 71.25 (9) (e),
25but not items identified in s. 71.25 (9) (f), and the situs of a sale shall be determined

1in the same manner as for state sales in s. 71.25 (9) (b), (d), (df), and (dh), not
2including s. 71.25 (9) (b) 2m. and 3., (c), (df) 3., and (dh) 4.
AB1-SA1,26,63 3. Any member that is a domestic international sales corporation as described
4in sections 991 to 994 of the Internal Revenue Code, a foreign sales corporation as
5described in sections 921 to 927 of the Internal Revenue Code, or an export trade
6corporation as described in sections 970 to 971 of the Internal Revenue Code.
AB1-SA1,26,1574. Any member that is a controlled foreign corporation as defined in section 957
8of the Internal Revenue Code, to the extent of the member's income that is defined
9in section 952 of of the Internal Revenue Code, including any lower-tier subsidiary's
10distribution of such income that was previously taxed, determined without regard
11to federal treaties, and the apportionment factors related to that income. For
12purposes of this subdivision, any item of income received by a controlled foreign
13corporation is excluded if the income was subject to an income tax imposed by a
14foreign country at an effective tax rate greater than 90 percent of the maximum tax
15rate specified in section 11 of the Internal Revenue Code.
AB1-SA1,26,1916 5. Any member that earns more than 20 percent of its income, directly or
17indirectly, from intangible property or service-related activities that are deductible
18against the business income of other members of the combined group, to the extent
19of that income and the apportionment factors related to that income.
AB1-SA1,26,2520 6. Any member that is doing business in a tax haven, if the member is engaged
21in an activity that is sufficient for that tax haven jurisdiction to impose a tax under
22federal law. If the member's business activity in a tax haven is entirely outside the
23scope of the laws and practices that cause the jurisdiction to be a tax haven, the
24member's business activity is not considered to be conducted in a tax haven for
25purposes of this section.
AB1-SA1,27,5
17. Any member not described in subds. 1. to 6., to the extent that its income is
2derived from or attributable to sources within the United States, including the
3District of Columbia and any territory or possession of the United States, as
4determined under the Internal Revenue Code and by its apportionment factors
5related to that income.
AB1-SA1,27,116 (b) The department may require that a combined report filed under this section
7include the income and associated apportionment factors of any persons not
8described under par. (a) that are members of a unitary business to reflect the proper
9apportionment of income of the entire unitary business, including persons that are
10not, or would not be, subject to the taxes imposed under this chapter if doing business
11in this state.
AB1-SA1,27,14 12(3) Components of income subject to tax. Each taxpayer member is
13responsible for the tax imposed under this chapter based on its taxable income or loss
14apportioned or allocated to this state, including:
AB1-SA1,27,1615 (a) Its share of any business income apportionable to this state of each of the
16combined groups of which it is a member, as determined under subs. (4) and (5).
AB1-SA1,27,1917 (b) Its share of any business income apportionable to this state of a distinct
18business activity conducted in and outside this state wholly by the taxpayer member,
19as determined under s. 71.25.
AB1-SA1,27,2120 (c) Its income from a business conducted wholly by the taxpayer member
21entirely in this state.
AB1-SA1,27,2322 (d) Its income sourced to this state from the sale or exchange of capital or assets
23and from involuntary conversions, as determined under sub. (4) (a) 8.
AB1-SA1,27,2424 (e) Its nonbusiness income or loss allocable to this state.
AB1-SA1,28,2
1(f) Its income or loss allocated or apportioned in an earlier year that is state
2source income during the income year, other than a net business loss carry-forward.
AB1-SA1,28,93 (g) Its net business loss carry-forward. If the taxable income computed under
4this subsection and subs. (4) and (5) results in a loss for a taxpayer member of the
5combined group, the taxpayer member has a net business loss, subject to the net
6business loss limitations and carry-forward provisions in s. 71.26 (4). The business
7loss is applied as a deduction in a subsequent year only if the taxpayer member has
8net income sourced to this state, regardless of whether the taxpayer is a member of
9a combined group in the subsequent year.
AB1-SA1,28,11 10(4) Business income of the combined group. The business income of a
11combined group is determined as follows:
AB1-SA1,28,1512 (a) Compute the sum of the income of each member of the combined group as
13determined for federal income tax purposes, as if the members were not consolidated
14for federal purposes, and modified as provided under s. 71.26. Each member of the
15combined group shall determine its income as follows:
AB1-SA1,28,2016 1. For any member incorporated in the United States, including the District of
17Columbia and any territory or possession of the United States, or included in a
18consolidated federal corporate income tax return, the income included in the total
19income of the combined group is the corporation's taxable income as determined
20under s. 71.26.
AB1-SA1,28,2321 2. Except as provided in subd. 3, for any member not included in subd. 1., the
22income included in the total income of the combined group shall be determined as
23follows:
AB1-SA1,29,3
1a. Each foreign branch or foreign corporation shall prepare a profit and loss
2statement in the currency in which the branch's or corporation's books of account are
3regularly maintained.
AB1-SA1,29,64 b. The member shall adjust any statement prepared under subd. 2. a. to
5conform to the accounting principles generally accepted in the United States for the
6preparation of profit and loss statements.
AB1-SA1,29,97 c. The member shall adjust any statement prepared under subd. 2. a. to
8conform to the tax accounting standards required by the department for the
9administration of this chapter.
AB1-SA1,29,1210 d. Each member of the combined group shall translate its profit and loss
11statements, and the related apportionment factors, into the currency in which the
12parent corporation maintains its books and records.
AB1-SA1,29,1413 e. Each member shall express in U.S. dollars the income apportioned to this
14state.
AB1-SA1,30,215 3. If the department determines that the income determination under this
16subsection reasonably approximates income as determined under s. 71.26, any
17member not included in subd. 1. may determine its income based on a consolidated
18profit and loss statement that includes the member and that is prepared for the
19purpose of filing, by related corporations, with the securities and exchange
20commission. If the member is not required to file with the securities and exchange
21commission, the department may allow, for purposes of this subdivision, the use of
22the consolidated profit and loss statement prepared for reporting to shareholders
23and subject to review by an independent auditor. If a statement described in this
24subdivision does not reasonably approximate income as determined under s. 71.26,
25the department may accept the statement if the member makes appropriate

1adjustments to the statement, as determined by the department, to approximate the
2income determined under s. 71.26.
AB1-SA1,30,53 4. If a unitary business includes income from a pass-through entity, the total
4income of the combined group includes the member's direct and indirect distributive
5share of the pass-through entity's unitary business income.
AB1-SA1,30,106 5. All dividends paid by one member to another are not included in the
7recipients income, if the dividends are paid out of the earnings and profits of the
8unitary business in the current taxable year or in an earlier taxable year. This
9subdivision does not apply to dividends received from members of a unitary business
10that are not a part of the combined group.
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